Shareholder Disputes
Fair value valuations and expert witness evidence in shareholder oppression and unfair prejudice proceedings.
Shareholder Dispute Forensic Accounting
Shareholder disputes under s994 Companies Act 2006 frequently require independent forensic accounting evidence on fair value, maintainable earnings, and minority discount. Sterling Forensic provides party-appointed and Single Joint Expert valuations and loss quantification in shareholder oppression and unfair prejudice proceedings across England and Wales.
Our shareholder dispute work addresses the financial questions that determine buy-out quantum: what is the fair value of the shareholding, should a minority discount apply, what are maintainable earnings, and what add-backs adjust reported profits to a fair basis.
What We Cover
- s994 Companies Act 2006 fair value valuations
- Minority discount and lack of marketability analysis
- Maintainable earnings and add-back analysis
- Party-appointed and SJE expert witness reports
- Unfair prejudice buy-out quantum
- Shareholder dispute loss quantification
Fair Value and Minority Discount
Fair value in s994 proceedings is typically assessed without minority discount, reflecting the value of the shareholding as a proportion of the whole. The minority discount debate — whether and to what extent a discount applies — is a central issue in many shareholder disputes. Sterling Forensic provides transparent reasoning on discount methodology, supported by maintainable earnings analysis and sector-appropriate multiples.
We accept instructions from claimant and respondent solicitors, and Single Joint Expert appointments where directed by the court.
Frequently Asked Questions
What is fair value in a shareholder dispute?
Fair value is the value of the shareholding on a basis determined by the court, typically reflecting the value of the shares without minority discount in unfair prejudice proceedings. The forensic accountant values the company, apportions value to the relevant shareholding, and provides expert evidence on maintainable earnings, multiples, and discount arguments.
Does Sterling Forensic accept Single Joint Expert appointments in shareholder disputes?
Yes. We accept SJE appointments in shareholder disputes and confirm availability and realistic timelines at the outset. Our reports comply with CPR Part 35 and are prepared for joint expert meetings where directed.
What financial records are required for a shareholder dispute valuation?
We typically require audited accounts, management accounts, tax returns, and supporting schedules for add-backs and normalisation. For trading businesses, we also review customer concentration, director remuneration, and related party transactions that may affect maintainable earnings.
Related Practice Areas
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